How to file GSTR-9: Preparing the first-ever annual return for financial year 2017-18

The filing of the first annual return for FY 2017-18 is due in roughly three months.. It covers a duration of 9 months from July 2017 to March 2018, as towards twelve months  in a financial yr. but many taxpayers nevertheless dread the instruction of annual return bureaucracy due to the fact the announcement of information in the annual returns has more than one implications.

The ultimate date has been prolonged to June 30, 2019, but it is crucial to know that GST Annual returns in GSTR-9, GSTR-9C or GSTR-9A can not be revised as soon as filed. furthermore, any incorrect records can attract tax needs and hobby or maybe penalties; depart alone the lengthy-time period litigations that could comply with years later.

GSTR-9 is an annual precis of the income, tax paid thereon, purchases, input tax credit score (ITC) claimed, ineligible credit, demands and refunds. If the shape turned into only a replica of the monthly GSTR-3B summarised at a every year stage, it'd were an smooth mission. the use of monthly GSTR-3Bs already filed through a taxpayer, the yearly form may be car-populated for the 12 months of the financial yr. however, being the first and possibly the final GSTR-9 format under the existing set up of GSTR-1 and GSTR-3B, every taxpayer should equipment up to make an correct assertion of transactions.

GSTR-nine auto-populates two fields. An choice to auto-fill from desk 4A of GSTR-3B is available to report the ITC declared as according to GSTR-3B within the desk 6A of the GSTR-nine. further, the once a year summary ITC contemplated in GSTR-2A is vehicle-stuffed in desk 8A of the GSTR-9. rest of the fields need to be looked after through the businesses. because of the choices taken within the thirty first GST council meeting, a taxpayer may additionally have a GSTR-9 that is not exactly the sum of information reported in GSTR-1 or GSTR-3B. So, the taxpayer can now claim values as accounted in books for a selected transaction(s). Taxpayers have to weigh the professionals and cons of maintaining a special discern that doesn't overall up to the values as consistent with GSTR-3B or GSTR-1 already filed for the specified duration. these differences should have an explanation and any brief charge of taxes on the cease of the 12 months should first be paid in cash in form DRC-03 and then the GSTR-nine ought to be filed.

The same council meeting had also addressed that irrespective of the month of filing, the table 8A (field that auto-populates GSTR-2A information) in GSTR-9 will reflect ITC as reported by all the suppliers of a tax filer. For invoices raised in FY 2017-18. Amid these developments, CBIC issued orders by the end of December 2018. These hold significance for filers of FY 2017-18 who have not finished compliance and those who desire to make corrections or claim ITC to already-filed returns. These are ..

• Any GST returns for July 2017 to September 2018 if not filed earlier, can now be filed up to 31st March 2019 without late fees.
• The input tax credit against purchase invoices of FY 2017-18 can be claimed before filing the GSTR-3B for the return period of March 2019.
• Portal has allowed amendments for B2B outward supplies which happened between July 2017-March 2018 in any GSTR-1 filed after September 2018, but up to March 2019.

With the extended time limit, taxpayers who are yet to submit GSTR-9 must proceed only after ensuring that all the GST Returns applicable to their business (GSTIN) during FY 2017-18 are filed. In addition to this, businesses can make necessary amendments related to FY 2017-18 in GSTR-1 or GSTR-3B being filed for present months till March 2019 return period and claim any missed but eligible ITC. Further, they can nudge their suppliers to upload invoice details in GSTR-1 for those genuine ITC of FY 2017-18 which were not appearing in GSTR-2A between period July 2017 to September 2018.

Taxpayers must reconcile data of FY 2017-18 throughout the year from July 2017 to September 2018 to identify differences if any between returns and between the book of accounts and returns. 

Advances paid or received must accordingly be adjusted at the year-end against invoices issued and balance must only be reflected. ITC reversals must be done at the end of the year as per CGST rules.

One may find it difficult to report the HSN wise summary for purchases in GSTR-9, where it is not maintained in the books of accounts while raising an invoice. Reporting of a particular HSN is required if the value under one HSN is more than 10% of the total value of all HSNs put together. This was never a requirement in GSTR-3B. Use of a tool along with the sorting and filter feature can help identify HSN and summarise for GSTR-9 details. Technology can thus come to the rescue of taxpayers, who want to do this efficiently.

All this can be easy with the help of a sturdy reconciliation tool that can easily identify mismatches, duplication of entries, match credit/ debit notes against respective invoices, correct the reporting into wrong tax heads, non-reporting and so on. Hence, taxpayers especially those subject to audit under GST must ensure that a certified reconciliation statement in GSTR-9C is obtained from the auditor who is a chartered accountant or the cost accountant as soon as possible and is filed along with GSTR-9.